The Incubator Concept as an Entry Mode option for SME’s

Anna Marie Dyhr Ulrich () and Svend Hollensen ()
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Anna Marie Dyhr Ulrich: Department of Border Region Studies, University of Southern Denmark, Denmark

Transnational Marketing Journal, 2014, vol. 2, issue 1, 1-19

Abstract: The aim of this article is to investigate the relevance of an alternative entry mode, the incubator concept. Such an alternative entry mode like the so-called incubator is increasingly being used as a shortcut or bridge to a distant market. In-depth qualitative research on a selected case (Kelsen Group selling butter cookies to India) reveals the reasoning behind the entry mode choice of a company entering an emergent market (India). The incubator option provides the opportunity for a company to bridge the ‘gap’ between a low-control entry mode (e.g. importer or distributor) and high-control entry mode (e.g. wholly owned sales subsidiary), without involving too high risks and still keep a reasonable level of control.

Keywords: Alternative Entry Modes; Incubator; Small- and Medium Sized Enterprises (SME); emerging markets; entry mode; international experience; control; social and cultural distance; risk; Kelsen Group; butter cookies; India (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:mig:tmjrnl:v:2:y:2014:i:1:p:1-19

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